Sears Continues To Trail Pack As Sales Drop 1.3%

In the month leading into the all-important holiday season, Sears, Roebuck & Co., the nation`s largest retailer, continued to trail other major department store companies in sales performance.

The retailer`s sales in November fell 1.3 percent, to $2.95 billion from $2.99 billion in November, 1988. Its comparable-store sales-sales measured at stores open at least 12 months and considered a more accurate gauge of performance-were up a scant 0.4 percent.

Most other major retailers posted moderate gains in sales in the period. But the news was not good for Sears.

Despite Sears` recent introduction of an ``everday-low-pricing`` strategy and merchandising format intended to make it more competitive with major discount retailers and specialty chains, its sales have been trailing other major department store companies.

Most analysts attributed the sales declines to a general slowdown in consumer spending, particularly on big-ticket items such as major appliances and consumer electronics, which account for about two-thirds of Sears`

business.

And Sears has been facing stiff competition from other retailers, which have been quick to match the new pricing strategy, and from automakers who have been offering an array of special deals to entice shoppers to spend their money on new cars.

Still, analysts said the poor November showing means Sears shoppers can expect to see more advertising and sales promotions at the retailer this holiday season.

``Sears numbers are not completely surprising because you`ve got a maturing economy and high consumer debt levels,`` said Richard Nelson, a retail analyst at Duff & Phelps Inc. in Chicago.

``People just are not out there buying bigger items like appliances and electronics,`` he said.

The slow sales of durable goods have been cited for the sharp dip in sales at Montgomery Ward & Co., the nation`s ninth largest retailer, where sales in November fell 2.1 percent, to $530.5 million from $542.1 million a year earlier. Its comparable-store sales fell 3 percent.

Retail sales are considered an important economic indicator because they account for about half the gross national product. The monthly sales reports from the nation`s major retail operators differ from those released monthly by the federal government in that they don`t include auto sales.

The November numbers are considered a good indicator of spending patterns for the holiday shopping season, when retailers typically make up to half of their annual profits.

Overall, analysts said the November sales numbers were in line with expectations, with stores more heavily into apparel doing the best.

The switch to an all-apparel strategy has finally begun paying off for Dallas-based J.C. Penney Co., which last year dropped durables, sporting goods and photographic equipment from its product line.

The retailer`s sales, which lagged in the first half of the year, have been showing improvement in recent months. Its November sales were up 6.6 percent, to $1.48 billion from $1.39 billion. Comparable-store sales were up 6 percent.

At Minneapolis-based Dayton Hudson Corp., sales were up 8.4 percent, to $1.13 billion from $1.04 billion. Comparable-store sales were up 6 percent.

St. Louis-based May Department Stores Co. reported a 6.6 percent increase in November sales, to $867.7 million from $813.6 million. The retailer said the numbers included sales for Foley`s and Filene`s, retail chains purchased last year. And it said the numbers have been restated to exclude stores that have been closed. Comparable-store sales increased 3.7 percent.

May is in the process of selling its Venture Discount Stores operation. Sales at Venture, which May is reporting as a discontinued operation, were up 3.9 percent, to $126.4 million, and its comparable-store numbers were up 1.4 percent.

Among the specialty retailers, for which apparel sales account for as much as 75 percent of their business, sales were even stronger.

Limited Inc., of Columbus, Ohio, reported a 14 percent increase in November sales, to $410 million from $361.2 million. Its same-store sales were up 9 percent.

Wal-Mart Inc., the Bentonville, Ark., discount chain, continued to outpace its competition with a 27 percent increase in sales to $2.64 billon from $2.08 billion.

Sales at Troy, Mich.-based K mart Corp., which lagged in the first part of the year, continued to show improvement last month. The discount retailer`s sales were up 7.2 percent, to $2.42 billion, and its comparable-store sales were up 3.9 percent. Unlike all the other retailers reporting November numbers, K mart`s figures did not include its Thanksgiving weekend sales.